Mustard Prices Stabilize After Dip, But Market Sentiment Remains Weak
The mustard market has come under pressure due to continued government sales and the influx of cheaper edible oils, which have collectively softened prices. In Jaipur, mustard seed prices have stabilized at around ₹7,100 per quintal after slipping below the ₹7,200 support level during the past week. Prices reached a low of ₹7,000 on Wednesday before recovering ₹100 by Saturday, resulting in a weekly decline of ₹125. Price weakness was also observed in other key markets. In Bharatpur, mustard prices declined by around ₹100 to ₹6,725 per quintal. Delhi markets held steady at ₹7,000, while Charkhi Dadri reported ₹7,075. States like Gujarat, Haryana, and Madhya Pradesh witnessed similar declines ranging between ₹100 and ₹125 per quintal. The premium Saloni variety in Agra also saw a drop, falling from ₹7,900 to ₹7,700. The mustard oil segment experienced a modest decline in prices over the past week. Expeller oil in Delhi traded at ₹1,450 per 10 kg, while Mumbai quoted ₹1,480. Kacchi Ghani oil prices saw sharper corrections, with rates falling by ₹10–50 across key cities such as Jaipur, Kota, Alwar, Hapur, and Ganganagar. The overall drop in oil prices reflects a subdued demand environment and competitive pressure from alternative edible oils. In the by-product market, demand for mustard meal remained weak. However, prices for de-oiled cake (DOC) saw an uptick, increasing by ₹500 per ton, with rates in Kota reaching ₹17,500. This suggests some resilience in the export or livestock feed demand for DOC, despite overall sluggishness in other segments. From a supply perspective, the market saw around 7 lakh tons of mustard arrivals in September, pushing the total arrivals for the season to 82.5 lakh tons. Farmers currently hold about 27.5 lakh tons in stock, which is 20% higher than the same period last year. On the other hand, processor stocks are down by 28%, and government agency holdings are down sharply by 66% year-on-year. The total available stock stands at 41 lakh tons, which is 26% lower than last year’s level—indicating a tighter supply situation overall. Despite the price pressure, the gap between mustard oil and soybean oil remains at ₹22 per kg, a level considered comfortable for the mustard market. While MSP support has helped stabilize prices to some extent, the market has yet to see a significant rally. Nevertheless, current price levels above the previous MSP could encourage increased mustard sowing in major producing states such as Rajasthan, Uttar Pradesh, Madhya Pradesh, Haryana, West Bengal, and Gujarat. Prices are expected to remain stable with limited downside risk until Diwali, although a strong upward movement appears unlikely in the near term.